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Economic Forecasts

2008 Economic Forecast for Metro Denver

Metro Denver is comprised of Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, and Jefferson Counties. There are two metropolitan statistical areas (MSAs) located within the Metro Denver region: the Boulder-Longmont MSA (Boulder County) and the Denver-Aurora MSA.

The region’s economy has a heavy concentration of high-tech businesses, which is certainly an asset in a national economy increasingly driven by technology and innovation. The nation’s 2001 recession dealt a heavy blow to high tech companies, however, and Metro Denver economic growth lagged the national average through most of the 2002-2004 period. In 2005, the area’s economic growth – as measured by GDP for the Denver-Aurora MSA – overtook the national trend, marking an almost four percent increase over growth in 2004.

As the national and state economies soften in 2008, Metro Denver’s economy will follow. The area’s many business assets, however, will make for a subtler slowdown than may be reported elsewhere. A well-educated workforce, stable housing market, and award-winning transportation infrastructure are building Metro Denver’s reputation as one of America’s top spots for business. The area’s healthy population and many eco-friendly businesses are also drawing attention as the national focus on conservation and sustainability grows. For these and many other reasons, Metro Denver is frequently highlighted in the national media.

  • Federal data show Denver’s airport was the nation’s fourth busiest in the first half of 2007. The airports in Atlanta, Chicago, and Dallas-Fort Worth saw the heaviest passenger traffic, followed by Denver International Airport (DIA) and Los Angeles International Airport (LAX). Airline officials expect that increased convention activity, more Frontier flights, and Southwest Airlines’ expanded Denver service will continue to boost travel trends.

  • DIA is the nation’s second favorite airport, according to the most recent Zagat U.S. Airlines Survey. The 7,500 survey respondents ranked U.S. airlines and airports on a variety of criteria, and DIA was voted second best behind Tampa International. Denver-based Frontier Airlines also scored winning marks for comfort, service, and its website.

  • According to the Trust for America’s Health, Colorado had the nation’s lowest rate of adult obesity in 2006. The group’s recent study also found Colorado’s rate of childhood obesity to be third lowest behind rates in Wyoming and Utah.

  • Colorado’s 2006 rate of adult smoking was the ninth lowest in the nation, according to the Centers for Disease Control and Prevention. The recent report shows Colorado’s rate of adult smoking hit 17.9 percent in 2006, the lowest rate recorded since the state began collecting data in 1990. The rate was also down noticeably from the 22.3 percent rate recorded in 2001.

  • The Children’s Hospital won a fourth-place spot in U.S. News & World Report’s “America’s Best Children’s Hospitals” ranking. Part of the September 2007 issue, the magazine’s ranking is based on criteria including patient volume and survival rates.

  • Metro Denver is the nation’s second-best center for business, says a recent report by business website MarketWatch. The report ranks the nation’s 50 largest metropolitan areas based on concentration of company headquarters, unemployment rate, population growth, and other criteria. Metro Denver placed second overall behind Minneapolis-St. Paul, and Metro Denver performed particularly well in the small business rankings.

  • Metro Denver is the only non-coastal city among top-tier spots for commercial real estate, said a recent report by the Urban Land Institute and PricewaterhouseCoopers. Metro Denver’s commercial real estate market ranked eighth among the 15 markets tracked in the report, and analysts gave special recognition to the city’s redeveloped urban core and the transit links between downtown and suburban communities.

  • The cost of living in Metro Denver falls midrange among costs in the nation’s largest metropolitan areas, according to the third quarter ACCRA Cost of Living Index. While the Denver-Aurora index value of 105 suggests the area’s cost of living is slightly above the national average (100), Denver costs are below those in several metro areas with similarly-sized populations. For example, the Portland, Oregon index registered 121.7 and the index for Baltimore, Maryland hit 118.1.

 

A full report is available to Metro Denver EDC investors.